Monday, August 15, 2005

By popular demand

George Bush has had an unbroken string of growth since putting his economic plan into place in 2002 and 2003, which has now resulted in a significant and unexpected rise in tax revenues and a major drop in the federal deficit.

Low mortgage rates have supported robust housing activity for more than four years. While many economists earlier forecast some slowing in home sales this year, many have now bumped estimates higher and now see 2005 striking a record.

The civilian unemployment rate dropped to 5 percent in June, down a notch from 5.1 percent in May and the lowest since September 2001. The jobless rate has drifted downward after hitting 6.3 percent in June 2003, its highest point during the economic recovery.

Strong consumer spending, solid job growth and rising levels of personal income have spurred optimism in financial markets that the economic expansion is rolling along despite a series of interest rate increases by the Federal Reserve.

—

The Standard & Poor's 500 index, for instance, the broadest stock market indicator, gained 15 percent over the last 12 months, despite a series of dips, including Friday's 7.42 point drop.

Similarly, the 10-year U.S. Treasury note, a good barometer of inflation expectations, has bounced from 3.9 percent in February, when investors became concerned that growth was slowing, up to 4.65 percent in March, when sentiment abruptly shifted to concern about possible price spikes.

After another tumble to 3.9 percent in July, the 10-year Treasury yield has popped back up again to close at 4.24 percent Friday.

—

Personal income, the fuel of a consumer-driven economy, broke out of a pattern of stagnation and rose a solid 0.5 percent in June. Retail sales rose 1.8 percent in July on the strength of auto sales. Meanwhile, employers created a stronger-than-expected 207,000 payroll jobs last month, propelling hourly wages to their biggest one-month jump in a year.

—

"Bottom line, the economy is healthy”

(Of course, this is where the rabidly liberal newspaper sees fit to launch into why we are doomed to fall on our face.)

I know that you don’t hear most of this on the news anymore. When the news is bad, its all you hear, but when its good, the hounds usually go silent. We’re doing well. The only newsworthy point concerning the economy is how the left has everyone seemingly fooled into believing that things are still bad.